The World Hasn’t Hit Peak Meat Just Yet, Bunge CEO Says

(Bloomberg) -- The growing popularity of plant-based products doesn’t mean the world is ready to start eating less meat, according to the head of one of the top crop traders.

The outlook for animal-protein consumption remains “up and to the right,” Bunge Ltd. Chief Executive Officer Gregory Heckman said in an interview at the FT Commodities Global Summit on Tuesday. Some of that demand will be met through alternative products, but meat consumption is still climbing in developing countries like China.

Heckman’s comments come as the coronavirus pandemic is poised to spark the biggest decline in per-capita meat eating in decades, with weakening economies spurring consumers to cut back on grocery bills. While meat production was also disrupted in several key regions, alternative products have been increasingly in the spotlight as consumer demand swells for foods made from the likes of pea and canola protein.

Still, there are signs the retreat may not be permanent as China rebuilds its hog industry after a devastating disease outbreak and the American herd remains at a record size. Chinese corn and soy purchases have been strong, boosting the agriculture industry, Heckman said. Bunge doesn’t produce meat itself, but trades commodities that fuel the world’s livestock herds.

The company has also reaped benefits from the fake-meat craze, as the products are heavily dependent on vegetable oils, in which it’s a leading player. Heckman said Bunge is looking for bolt-on acquisitions in fats and oils and expects the business to grow partly from the plant-based sector.

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